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Fiesta28 [93]
4 years ago
5

Lew Co. sold 200,000 corrugated boxes for $2 each. Lew's cost was $1 per unit. The sales agreement gave the customer the right t

o return up to 60% of the boxes within the first six months, provided an appropriate reason was given. It was immediately determined, with appropriate reason, that 5% of the boxes would be returned. Lew absorbed an additional $10,000 to process the returns and expects to resell the boxes.
What amount should Lew report as operating profit from this transaction?
a) $170,000
b) $179,500
c) $180,000
d) $200,000
Business
1 answer:
Harlamova29_29 [7]4 years ago
8 0

Answer:

a) $170,000

Explanation:

Total Sales = 200,000 X 2 = 400,000

-Sales Return = 400,000 X 5% = 20,000

=Net Sales = 380,000

-Cost of corrugated boxes = 200,000 X 1 = 200,000

=Gross Margin = 180,000

-Additional Cost = 10,000

=Operating profit = 170,000

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elixir [45]

Answer: See explanation

Explanation:

Warehousing refers to the act of storing goods which will then be distributed later or sold. Companies normally have a room or building where they keep their goods and such place are designed for storage.

The Functions of Warehousing include:

• Storage

• Purchasing of goods

• Inventory management.

• Materials handling, and packaging.

On the other hand, a warehouse refers to the building that is used for storing goods and making them available later when they are needed.

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3 years ago
What activities can Future Educators Association members participate in? Select two options. Sporting events political rallies c
tatuchka [14]

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Explanation:

3,5,6

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3 years ago
Item 5Item 5Chet Bowes owns his own landscaping business, including all the land on which the company grows its plants, and all
grigory [225]

Answer:

right to private property and inheritance

Explanation:

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6 0
3 years ago
Suppose a common resourcelong dash—wood in a public forestlong dash—is being overused because residents consider the benefits of
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8 0
4 years ago
George Jefferson established a trust fund that will provide $170,500 per year in scholarships. The trust fund earns an annual re
Dimas [21]

Answer:

$8,119,048

Explanation:

Given that,

Amount of scholarships = $170,500 per year

Trust fund earns an annual rate of return = 2.1 percent

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2.1% of x = Amount of scholarships

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x = $170,500 ÷ 0.021

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Therefore, the amount of money that is contributed by the George Jefferson to the trust is $8,119,048.

4 0
3 years ago
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